Reconciling mining, biodiversity conservation & related financing needs through landscape- scale impact mitigation in Mongolia Transformative Innovations in Biodiversity Financing Pyeongchang, 16 October 2014 Transformative Innovations in Biodiversity Financing Pyeongchang, 16 October 2014 Andrew Deutz, Ph.D. Director, International Government Relations The Nature Conservancy Andrew Deutz, Ph.D. Director, International Government Relations The Nature Conservancy

conservation portfolio railways National PAs Aimag centers Aimag borders Conservation Portfolio – Potential Protected Area

Mining Leases in Mongolia > 30% GDP> 85% exports$ 0 for conservation

Mongolia’s challenge: How can a mining-focused economy support conservation & development objectives for people and nature?

Area under mining leases decreased from 44% to 10% Area of active mining doubled in last 4 years Opportunity for Reconciliation: President of Mongolia banned mining licensing for 4 Years Active Mining Exploration

New Mitigation Laws Government modified Environmental Impact law in 2012 requiring implementation of mitigation hierarchy and enabling offsets Regulations issued in February 2014 and being piloted now Offset investments in new protected areas defined through development of a conservation portfolio (ongoing)

Development by Design Framework 1.Setting Priorities Conservation, ecosystem services, other values 2. Projecting Impacts Cumulative impacts, early warning, avoidance, opportunities for sustainable outcomes 3.Identifying Best Options For impacts that do occur, opportunities for mitigation strategies and offsets 4. Measuring Progress Extent to which mitigation actions support conservation goals Region- Level Analysis Project- Level Analysis

Mongolia’s Mitigation Framework: Uses landscape–scale mitigation to help… Identify potential conflict before it happens AVOID impacts incompatible with conservation objectives REDUCE costs associated with threats from outside protected areas

Development by Design identifies and reduces potential conflict between the conservation portfolio and current mining leases South Gobi region of Mongolia

Mongolia’s Mitigation Framework: Use landscape–scale mitigation to help… OFFSET in an ecologically sound manner and direct investments to high conservation priority areas

Mining leases active mines application / exploration leases Conservation portfolio Model of mining and conservation portfolio expansion in South Gobi

2014 existing mining leases: potential offsets: 607,000 ha 6,070,000 ha Mining leases active mines application / exploration leases Conservation portfolio

2015 new mining leases: potential offsets: 121,400 ha 1,214,000 ha Mining leases active mines application / exploration leases Conservation portfolio

,700 ha 1,457,000 ha new mining leases: potential offsets: Mining leases active mines application / exploration leases Conservation portfolio

,800 ha 1,174,000 ha new mining leases: potential offsets: Mining leases active mines application / exploration leases Conservation portfolio

,800 ha 2,098,000 ha new mining leases: potential offsets: Mining leases active mines application / exploration leases Conservation portfolio

,800 ha 2,518,000 ha new mining leases: potential offsets: Mining leases active mines application / exploration leases Conservation portfolio

,100 ha 3,021,000 ha new mining leases: potential offsets: Mining leases active mines application / exploration leases Conservation portfolio

,500 ha 3,625,000 ha new mining leases: potential offsets: Mining leases active mines application / exploration leases Conservation portfolio

Offsets most likely to succeed when: They are mandatory, government-enforced requirement They are applied within context of the mitigation hierarchy and planned in a landscape context, taking into account cumulative impact scenarios Clear guidance is provided for developers and government managers Instituted gradually: this takes a long time!